Development Stratergies Flashcards
What are the 8 development strategies?
Industrial development, Microfinance, Intermediate technology, Investment, Debt relief, International aid, Fair-trade, Tourism
What is industrial development?
The growth of manufacturing in a countries economy that leads to the multiplier effect
What is fair trade?
An international organisation helping farmers to cooperate and together sell their products at a fair minimum price
What does tourism do?
Creates greater wealth than primary industries so government can tax the wealth
What is investment?
Industrial development needs investment from TNCs
Investment leads to the multiplier effect and increased economic growth and quality of life
What is debt relief?
When an LIC have been left with debts the cancellation of these or lowering of interest ates can aid development as they can invest more into the economy
What is micro-finance?
Very small loans (normally in the form of product) provided to those living in poverty to help support their business
What is intermediate technology?
Uses simple and appropriate technology that the local community can set up, work with and maintain to improve development and their quality of life
What is international aid?
When a resource of money is given from one country to another country to help in one way
What conditions are necessary for economic development?
Location - need accessible trade links
Low tax - attract foreign TNCs (cause industrialisation)
Allowing capitalism - through policies and laws the government can generate more money for the population
What are the consequences of industrial development?
Exploitation of working population
Environmental damage due to emissions and toxic waste
Loss of basic civil rights and poor health + work life balance
Cost of living increases = more inequality
As manufacturing industries start to grow what begins to take effect?
MULTIPLIER EFFECT🚀
Give an example of industrial developments multiplier effect?
Import raw materials - ports grow and improve - more people hired - allows greater exports and more money - people have an income - quality of life increases
Give another example of the multiplier effect within industrial development?
New skilled jobs are created - generates more money - disposable income and luxuries owned increase - better quality f life and education
Give another example of the multiplier effect industrial development ?
As infrastructure is invested in - water pipeline are built increasing connectivity - improves access to clean water - fewer waterborne diseases
What are the benefits of fair trade?
Fair trade Premium - work together and invest in the community
Guaranteed minimum price
Improved/safer working conditions
Promotes gender equality
What are challenges do non- fair trade farmers face?
Paid little and struggle to survive
Exploitative, unsafe and dangerous conditions
Forced child labour
What percentage of the world’s chocolate is fairly traded?
5%
What are farmers likely to do with the profit they receive from fair trade?
MULTIPLIER EFFECT
Invest and grow their farms
More employees are needed
Locals benefit = secure employment
Local economy starts to grow
How do good working conditions and health and safety help farmers?
Prevent illness and disease
No absences = mor productivity
Continue to grow farm - leads to creation of more jobs
What are the benefits to development of tourism ?
Provides a variety of jobs for locals
Water and sanitation infrastructure improves
Rich tourists provide an income for local businesses
Transport improves to allow movement of people and goods
Environment is cleaned and health improves
Multilingual employers learn new skills
What are the problems associated with tourism?
All inclusive resorts keep all the money - tourists may not leave hotel
Leaky tourism
Vulnerable due to over dependancy on tourist industry
Causes littering and local pollution
Tourism doesn’t make the entire country wealthy
How many jobs has Jamaican Tourism generated?
200,000 jobs - chefs, tour guides, maintenance, cleaning etc.
How much of Jamaica’s GNI is generated from tourism?
24%
